NEW DELHI: Telecom Regulatory Authority of India (Trai) Chairman RS Sharma said the recommendations on free data were in complete conformity with the principles of net neutrality and didn’t violate any clauses of discriminatory banning of data services.

“The idea was to formalise a structure to provide free data to consumers in accordance with the principles of net neutrality,” Sharma told ET. His comments come a day after the telecom regulator released its recommendations which call for an “aggregator model” to offer rewards to subscribers for using data on the aggregator’s platform.

The model has evoked concerns from certain quarters that reimbursing a user for pre-selected websites were in effect same as zero-rating plans and hence violate both the regulator’s previous ban on discriminatory pricing as well as net neutrality.

“We haven’t permitted any exclusive relationship between a telecom service provider and a content provider. If a content provider wants to provide free data, it will have to team up with all service providers,” Sharma explained. “There is no gatekeeping which a telecom service provider can do”.

He added that even a telecom service provider can become an aggregator, provided there is an “arm’s length distance” between the two businesses, the chairman said, adding that the aggregator model will need to develop and evolve over time.

He further clarified that any scheme that requires any sort of arrangement with some or all telecom service providers for the delivery of free data with the resulting effect of discriminatory tariffs based on content should not be permitted.

Aday after the recommendations, some backers of net neutrality had said that the recommendations permitting the app providers/websites to provide free data, albeit operator-agnostic, would create entry barriers for smaller players who might not be able to pay the specified rate, thus leading to a monopoly of the large providers once again.

However, Trai believes that the benefits of providing free data without any discriminatory aspects will help push broadband usage in the country and the pros far outweigh any of the limitations pointed out.

While the regulator has banned exclusive tie-ups between content providers and telecom service providers, the recommendations on Monday said aggregators may be one of the ways for providing non-discriminatory free data to users.

“This is based on the rationale that the use of third-party aggregators would allow the market to benefit from transparency and consistency of pricing, encouraging small or start-up content providers and ISPs, to engage with the consumers for providing free data.”

Trai officials also add that as a telecom regulator, its purview is limited to make sure that the schemes for free data are telco-agnostic and transparent in data pricing with the aim of getting more people connected to the Internet.

The telecom department now needs to consider these recommendations, and may even send it back to the Trai for clarifications.

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